Global Thermal Energy Storage Market to Hit $7,472.9 Million by 2023, APAC to be the Fastest Growing Region

Global Thermal Energy Storage Market to Hit $7,472.9 Million by 2023, APAC to be the Fastest Growing Region

According to the new market research report published by P&S Intelligence, global thermal energy storage market is projected to reach $7,472.9 million by 2023, the market growth is mainly driven by government incentives to promote the adoption of thermal energy storage solutions and increasing demand for balanced power supply.

Based on type, the thermal energy storage market has been categorized into pumped heat electrical storage (PHES), concentrated solar power (CSP), and others. The demand for CSP systems is expected to exhibit a CAGR of 22.2% in terms of volume during the forecast period. The growth in the demand for CSP systems is mainly driven by the rising need for power for heating and cooling applications in addition to the increasing focus on electricity generation through solar power projects.

The thermal energy storage market has also been categorized into sensible heat, latent heat, and thermo-chemical technologies. Sensible heat storage technology held the largest share in the market during the historical period. The market for this technology is primarily driven by the growing adoption of molten salt-based storage systems for CSP plants.

During the forecast period, the thermal energy storage market is expected to witness the fastest growth in APAC, with 44.7% CAGR in terms of value. The market in the region is mainly driven by the increasing energy demand resulting from population growth. With fast depleting fuels such as oil and natural gas, renewable energy sources have gained traction in the APAC region in recent years. Often, the most overlooked aspect of renewable energy generation is the task of storing the energy produced. To address this, governments of countries such as China and India are focusing on technologies and solutions that help store the power generated from renewable sources.

New technologies such as seasonal thermal storage and molten salt thermal storage allow for the storage of energy for the entire day. Due to this, the adoption of these technologies is increasing at a rapid pace in the region, which, in turn, is contributing to the growth of the thermal energy storage market.

UTES is a new technology developed for storing thermal energy. The technology is gaining traction in Europe and North America owing to the high presence of aquifers and salt caverns in these regions. The technology is widely used for underground energy storage and power generation purposes. Thus, the development of the UTES technology can be viewed as a growth opportunity for the players operating in the thermal energy storage market.